Other Answers

1.1 What are the advantages of observation and its limitations as a method of collecting
information? (6 marks)

1.2 State TWO (2) advantages of primary data. (2 marks)
1.3 Explain any TWO (2) differences between a bar chart and histogram. (2 marks)
1.4 The capacities (in millions of litres) of each of the four major storage dams that supply
the water requirements of Cape Town are shown in the table 1.1 below;
Storage Dam Capacity (Ml)
Wemmershoek 158 644
Steenbras 95 284
Voelvlei 244 122
Theewatersloof 440 255
Table: 1.1
1.4.1 Construct a pie chart showing the percentage of water supplied by each storage
dam. (5 marks)
1.4.2 What percentage of Cape Town’s water supply is provided by;
PROGRAMME BACHELOR OF COMMERCE IN INFORMATION TECHNOLOGY
MODULE ANALYTICAL TECHNIQUES
TOTAL MARKS 100 MARKS
1.4.2.1 Voelvlei dam? (1 mark)
1.4.2.2 Wemmershoek and Steenbras dams together? (2 marks)
1.5 Define the term ‘trend’ as used in Time Series Analysis and Forecasting.

How can workers participate in discussion with the person and supervisor in a manner that supports the person’s self-determination? (80–110 words)

The monthly budget is per 1,000 cartons. The overhead expenses which are all Fixed are budgeted at sh 40,000 and selling price per 1kg packet of soap is sh
25. the following details relate to October 2007 when 1,200 cartons of soap
Were produced and sold

Ksh
Sales 1,200 cartons 552,000
Raw materials:
Tallow 10,800 kgs 129,600
Caustic soda 13200 kgs 198,000
Labour; 26,400 hours 145,200
Fixed overhead expenditure 42,000

REQUIRED: calculate

a) Price and usage variances each raw materials. (8 Marks)
b) Labour rate and efficiency variances. (3 Marks)
c) Sales price and volume variances. (5 Marks)
d) Overhead expenditure variances. (2 Marks)

1. a) Bara enterprises operates in Kitale town. On annual basis, it orders 480,000 pens form a Nairobi based distributor. A packet of 24 pens delivered to Baras warehouse cost sh 480 including transport charges. The supermarket barrows money from ABC bank of an interest rate of 10% p.a to finance its inventories. The supermarket also incurs sh 1,500 to place an order for the pens and sh 8 carrying cost for each pen

REQUIRED:

i) Calculate the economic order quantity (EOQ) for the pens
ii) Total cost of the EOQ.
iii) For orders for 72,000 pens and above the distributer has offered a discount rate of 10% on delivery price.

Advice the management of the supermarket on whether to take advantages of the discount offer.

⦁ An organisation’s stock records show the following transactions for a specific item during last month:
Date Receipts Issues
units units
4th 50
13th 200
20th 50
27th 50

The stock at the beginning of last month consisted of 100 units valued at £6,700.
The receipts last month cost £62 per unit.
The value of the closing stock for last month has been calculated twice – once using a FIFO valuation and once using a LIFO valuation.
Which of the following statements about the valuation of closing stock for last month is correct?
A The FIFO valuation is higher than the LIFO valuation by £250.
B The LIFO valuation is higher than the FIFO valuation by £250.
C The FIFO valuation is higher than the LIFO valuation by £500.
D The LIFO valuation is higher than the FIFO valuation by £500.

Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage to a welding shop making and selling metal doors and windows. He had anticipated that he cost of welding shop would primarily be final but has realized that the welding cost increased with the increase in number of welding job assignment. The costs of welding job assignments are as follows.

Perched
No of welding job assignments
Total cost sh ‘000’
Sept 2008
280
700
Oct 2008
800
860
Nov 2008
1,240
110
Dec 2008
1,000
960
Jan 2009
600
720
Feb 2009
920
910
Mar 2009
860
880
Apr 2009
1,200
260

REQUIRED:
Formulate an equation to estimate the total cost of the welding shop and compute the cost of undertakings 1256 assignment using

i) High-low method
ii) Simple linear regression method.

Bara enterprises operates in Kitale town. On annual basis, it orders 480,000 pens form a Nairobi based distributor. A packet of 24 pens delivered to Baras warehouse cost sh 480 including transport charges. The supermarket barrows money from ABC bank of an interest rate of 10% p.a to finance its inventories. The supermarket also incurs sh 1,500 to place an order for the pens and sh 8 carrying cost for each pen

REQUIRED:

i) Calculate the economic order quantity (EOQ) for the pens
ii) Total cost of the EOQ.
iii) For orders for 72,000 pens and above the distributer has offered a discount rate of 10% on delivery price.

Advice the management of the supermarket on whether to take advantages of the discount offer.

Tropical ltd produces powder soap for households use. The standard direct costs per carton containing 20 packets of one kg each is as follows:

Raw materials
15 kgs of tallons @ sh 10 per kg
10 kgs of caustic soda @ sh 16 per kg
Labour 20 hours @ 5 per hour

Packed materials
20 packets @ 50 cents each
1 carton @ sh 5 each

The monthly budget is per 1,000 cartons. The overhead expenses which are all Fixed are budgeted at sh 40,000 and selling price per 1kg packet of soap is sh
25. the following details relate to October 2007 when 1,200 cartons of soap
Were produced and sold

Ksh
Sales 1,200 cartons 552,000
Raw materials:
Tallow 10,800 kgs 129,600
Caustic soda 13200 kgs 198,000
Labour; 26,400 hours 145,200
Fixed overhead expenditure 42,000

REQUIRED: calculate

a) Price and usage variances each raw materials.
b) Labour rate and efficiency variances.
c) Sales price and volume variances.
d) Overhead expenditure variances.

Provide a detailed report on the kinds of test automation strategies that should be used in Agile System development.

What does WorldCom’s experience teach us about corporate wrongdoing?